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Belgium ends monthly VAT pre-payments

Taxpayers in Belgium will no longer be required to submit monthly pre-payments if already providing quarterly VAT returns.

Currently, if a business’ annual turnover is below 2.5 million EUR and the value of intra-Community supplies during any of the previous four quarters does not exceed 50,000.00 EUR, they are allowed to submit VAT returns quarterly, instead of monthly. Nonetheless, such businesses are obligated to make pre-payments on a monthly basis for an amount equal to one-third of the VAT paid in the previous VAT return.

Also, last week the Belgian authorities established that monthly pre-payments will no longer be compulsory as from 01 April, 2017. But quarterly VAT returns will still be allowed. For such businesses, it will be obligatory to make one annual pre-payment in the same conditions as those currently applicable to businesses submitting monthly returns. By 24 December every year this annual pre-payment will be due and should be calculated using the below two options:

Make a payment of the same amount paid in the month of November of that year (immediately previous return).

Make a payment of the VAT amount due (VAT payable less VAT deductibles) on the period from 01 December to 20 December of that year.